Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Kiwisaver: Several welcome changes

24 August 2006

Several welcome changes but arm-twisting not appropriate for KiwiSaver

Changes to the KiwiSaver scheme announced today are generally positive, according to Business NZ.

Chief Executive Phil O' Reilly says the later starting date, tax changes and ability to divert KiwiSaver funds into mortgage repayments are useful additions to the scheme.

"Business NZ expressed concern at the outset since the scheme arrived almost as a fait accompli, without debate about the best kind of superannuation system for New Zealand. If it is to make a positive contribution to savings security, changes such as those announced today will be largely helpful.

"One exception is the recommended change to allow the minimum contribution to be made up of both an employee's and employer's contribution. This change, in combination with the relatively high threshold of 4% of income, could put undue pressure on employers to pay into employees' schemes.

"Business NZ has always advocated that employers should not be subject to compulsion or pressure to pay for employees' retirement savings, as their support for the scheme is vital, and the scheme should not suffer negative outcomes as a result of such pressure.

"Any changes that encourage arm-twisting over co-contributions would not be a healthy addition to the KiwiSaver scheme and Business NZ will present its concerns regarding this to the select committee."

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news